Forex. EUR/USD trading forecast and signal for today, April 27
Euro/dollar currency pair fell to the level of 1.2085.
The volatility of quotations was traditionally low at the beginning of the week. Market participants are waiting for the results of the Fed's meeting on Wednesday, where new forecasts for economic growth and the recovery of inflation will be announced. Inflationary pressures are likely to increase, but the US Central Bank will confirm its commitment to soft monetary policy and low interest rates for a long time. The short-term dynamics of the foreign exchange market is associated with high demand for risky assets, and the April meeting of the Federal Reserve is unlikely to change this trend.
Last month, the European Central Bank said it intended to increase purchases of government bonds, although it still remains within the planned package of 1.85 trillion euros until March 2022. The initiative was adopted to address the problem of rising bond yields in the euro area. Net bond purchases have increased over the past couple of weeks, in line with the March meeting's stance of increasing volume as a measure to curb rising yields. At the same time, the ECB expressed concern about the sharp increase in the cost of borrowing for the governments of the region. In general, the regulator remains cautious, there were more hard-line opinions expressing hope that the Central Bank will be able to curtail its stimulus program. However, ECB President Christine Lagarde stressed that there have not been and will not be any discussions about stopping purchases under the current program in the near future.
Forex Trading Signal for EUR/USD
In the forecast, I expect euro/dollar to rise to the levels 1.2100, 1.2125 and 1.2150.